SENATE BILL NO. 617 May 26, 1999, Introduced by Senator DINGELL and referred to the Committee on Finance. A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 4k (MCL 205.94k), as amended by 1996 PA 477. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 4k. (1) The tax levied under this act does not apply 2 to parts and materials, excluding shop equipment or fuel, affixed 3 to or to be affixed in this state to an aircraft owned or used by 4 a domestic air carrier that is any of the following: 5 (a) An aircraft for use solely in the transport of air cargo 6 that has a maximum certificated takeoff weight of at least 12,500 7 pounds for taxes levied before January 1, 1997 and at least 6,000 8 pounds for taxes levied after December 31, 1996. 9 (b) An aircraft that is used solely in the regularly 10 scheduled transport of passengers. 02382'99 CSC 2 1 (c) An aircraft other than an aircraft described in 2 subdivision (b), that has a maximum certificated takeoff weight 3 of at least 12,500 pounds for taxes levied before January 1, 1997 4 and at least 6,000 pounds for taxes levied after December 31, 5 1996, and that is designed to have a maximum passenger seating 6 configuration of more than 30 seats and used solely in the trans- 7 port of passengers. 8 (2) For taxes levied after December 31, 1992,and before9May 1, 1999,the tax levied under this act does not apply to the 10 storage, use, or consumption of rolling stock used in interstate 11 commerce and purchased, rented, or leased outside of this state 12 by an interstate motor carrier. A refund for taxes paid before 13 January 1, 1997 shall not be paid under this subsection if the 14 refund claim is made after June 30, 1997. 15 (3) For taxes levied after December 31, 1996,and before16May 1, 1999,the tax levied under this act does not apply to the 17 product of the out-of-state usage percentage and the price other- 18 wise taxable under this act of a qualified truck or a trailer 19 designed to be drawn behind a qualified truck, purchased, rented, 20 or leased in this state by an interstate motor carrier and used 21 in interstate commerce. 22 (4) As used in this section: 23 (a) "Domestic air carrier" is limited to entities engaged in 24 the commercial transport for hire of cargo or entities engaged in 25 the commercial transport of passengers as a business activity. 26 (b) "Interstate motor carrier" means a person engaged in the 27 business of carrying persons or property, other than themselves, 02382'99 3 1 their employees, or their own property, for hire across state 2 lines, whose fleet mileage was driven at least 10% outside of 3 this state in the immediately preceding tax year. 4 (c) "Out-of-state usage percentage" is a fraction, the 5 numerator of which is the number of miles driven outside of this 6 state in the immediately preceding tax year by qualified trucks 7 used by the taxpayer and the denominator of which is the total 8 miles driven in the immediately preceding tax year by qualified 9 trucks used by the taxpayer. Miles driven by qualified trucks 10 used solely in intrastate commerce shall not be included in cal- 11 culating the out-of-state usage percentage. 12 (d) "Qualified truck" means a commercial motor vehicle power 13 unit that has 2 axles and a gross vehicle weight rating in excess 14 of 10,000 pounds or a commercial motor vehicle power unit that 15 has 3 or more axles. 16 (e) "Rolling stock" means a qualified truck, a trailer 17 designed to be drawn behind a qualified truck, and parts affixed 18 to either a qualified truck or a trailer designed to be drawn 19 behind a qualified truck. 02382'99 Final page. CSC